Another big UK retail business has entered into administration, resulting in job cuts at a time when employment rates have started declining in Scotland.
The West Lothian haulage company Corporate Road Solutions 24:7 went into administration on Monday, after what they have described as “increasingly challenging market conditions and cost pressures.”
66 Jobs Cut as Company enters Administration
The haulage company has cut 66 jobs, only retaining four members of staff, to help administrators. This comes at a time when the Scottish employment rate has started falling sharply. The Office for National Statistics revealed that the number of Scots in work fell by 43,000 people in the three months to September, to a level of 2,643,000 people.
Blair Nimmo, joint administrator and KPMG’s UK head of restructuring, said: “It has not proved possible to continue trading in light of significant liabilities and cash flow difficulties.” This does not come as a surprise, when assessing the wider UK business climate.
The trend continues…
The Corporate Road Solutions 24:7 administration comes at a time when many UK retail businesses are struggling to survive in the current economic climate. Mothercare went into administration only a week ago, followed by its rival, Mamas & Papas, only a few days later.
These struggles by UK businesses are symptomatic of distress among UK businesses as a whole. As of late, a trend has developed on the high street, as established UK highstreet shops are shutting down on an almost-weekly basis.
Amid fears about Brexit, people are less willing to spend money, while businesses content with growing anxieties of a poorly executed Brexit deal. Confidence is the lifeblood of businesses, and that’s been lacking in recent months.
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